Shoe Stores

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,800 shoe stores in the US sell most types of new footwear and related items. Major product categories include women’s footwear, men’s athletic footwear, women’s athletic footwear, and children’s athletic footwear. Shoe stores may also sell clothing and accessories, such as socks, belts, hosiery, and jewelry. The shoe store industry includes national chains, regional chains, franchises, and independent operators.

Managing Highly Seasonal Demand

The shoe business is highly seasonal and driven by the fashion calendar, which generally revolves around fall and spring collections.

Dependence On Foreign Sources

Imports account for over 98% of footwear sold in the US according to the American Apparel and Footwear Association (AAFA).

Industry size & Structure

The average shoe store employs about 29-30 workers and generates $5-6 million annually.

    • The shoe store industry consists of 4,800 companies that employ about 143,000 workers and generate $28.6 billion annually.
    • The industry is concentrated; the top 50 companies account for 82% of industry revenue.
    • The shoe store industry includes national chains, regional chains, franchises, and independent operators.
    • Independent shoe retailers average two to four stores, employ seven workers per store, and carry an inventory worth $250,000 or more, according to National Shoe Retailers Association (NSRA) survey. The average per-pair price is $135.
    • Large companies include Footlocker, Genesco (Journeys, Johnston & Murphy), Caleres (formerly Brown Shoe and parent of Famous Footwear) and DSW (Designer Shoe Warehouse). Large firms may have stores outside of the US or operate the shoe department within another retailer.
                                Industry Forecast
                                Shoe Stores Industry Growth
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                Apr 22, 2022 - Retail Spending Rises Despite Inflation Pressure
                                • US retail spending rose 0.4% in March 2022 compared to the previous month. Retail sales for clothing and clothing accessories stores, which includes shoe stores, grew 2.6% in March over February. However, growth in retail sales was not able to outpace inflation which grew at an annual rate of 8.5% in March, a new four-decade high. With gasoline prices at record highs, consumers are likely pulling back on some discretionary spending, according to The Wall Street Journal. As the Omicron variant has faded, consumers are spending more on services and less on physical goods.
                                • Foot pain increased during the coronavirus pandemic as people working from home stopped wearing supportive shoes in favor of flimsy slippers and flip-flops while others become more active, which put new strain on their feet. Podiatrists, orthopedic surgeons, and physical therapists say that they’re seeing more cases of plantar fasciitis and Achilles tendinitis — two common foot-pain conditions — than ever before. Supportive shoes and lifestyle changes, such as maintaining a healthy weight, are the best bets for keeping foot pain at bay, said Richard K. Rettig, chief of the division of podiatry at Einstein Healthcare.
                                • Shoe stores may struggle to maintain adequate inventory of some imported products due to COVID-19 outbreaks in China. China’s manufacturing output has decreased as the country’s zero-tolerance approach to the pandemic forced factories into temporary shutdowns. As of April 11, 87 of China’s 100 largest cities were in some form of lockdown, according to economic research firm Gavekal Dragonomics, which has been tracking lockdowns during the pandemic. According to The New York Times, the restrictions were a drag on China’s industrial output in March, and April’s results are expected to be worse.
                                • Purchases of athletic shoes and apparel have “meaningfully” migrated online, and 40% of consumers are using apps to shop, according to investment bank and financial services firm Morgan Stanley. The move to online channels “appears sticky” per expectations over the next twelve months.
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